A local distributor for a national tire company expects to sell approximately 9,240 tires of a certain size and tread design next year. Annual carrying cost is $18 per tire and ordering cost is $84. The distributor operates 286 days a year. a. What is the EOQ? (Round your answer to a whole number.) 1:00 b. How many times per year does the store reorder? (Round your answer to two decimal points.) Number of Ondors per Year c. What is the length of an order cycle? (Round your answer to two decimal points.) Length of Order Cycle d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.) Total Annual Inventory Cost
A local distributor for a national tire company expects to sell approximately 9,240 tires of a certain size and tread design next year. Annual carrying cost is $18 per tire and ordering cost is $84. The distributor operates 286 days a year. a. What is the EOQ? (Round your answer to a whole number.) 1:00 b. How many times per year does the store reorder? (Round your answer to two decimal points.) Number of Ondors per Year c. What is the length of an order cycle? (Round your answer to two decimal points.) Length of Order Cycle d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.) Total Annual Inventory Cost
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Transcribed Image Text:A local distributor for a national tire company expects to sell approximately 9,240 tires of a certain size and tread design next year.
Annual carrying cost is $18 per tire and ordering cost is $84. The distributor operates 286 days a year.
a. What is the EOQ? (Round your answer to a whole number.)
1:00
b. How many times per year does the store reorder? (Round your answer to two decimal points.)
Number of Ondors per Year
c. What is the length of an order cycle? (Round your answer to two decimal points.)
Length of Order Cycle
d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.)
Total Annual Inventory Cost
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